Saab Ab (publ) Stock Earnings Reports

Saab reported a strong Q3 2025 with record third-quarter sales and EBIT, driven by robust order intake and execution across business areas. Order intake was ~SEK 21bn in Q3 (with an additional SEK 16bn booked in October after quarter close), lifting backlog to ~SEK 202bn, 73% international and concentrated in Dynamics and Surveillance. Management raised 2025 organic sales guidance to 20–24% (from 16–20%) and reiterated that EBIT should grow more than sales and that the company expects to generate positive cash flow for the year. Key drivers: continued Gripen demand (Thailand contracted, Colombia selected but not yet contracted; Ukraine LOI announced — no contract yet), strong Dynamics (large backlog, export orders, capacity expansion in Karlskoga, US and India), accelerating Surveillance campaigns (GlobalEye interest from multiple countries), and Aeronautics ramping with T-7A ramp-up costs still weighing on margins but improving over time. Saab is investing heavily in capacity and R&D (including counter-UAS, AI/autonomy and collaborative combat systems) and increasing capex (~SEK 4.9bn YTD) to support growth; this has driven a negative YTD free cash flow so far but management expects operational cash generation and large customer payments in Q4 to restore positive cash flow. Sustainability and workforce: CO2 intensity improving (33% reduction vs base year toward a 42% target by 2030), a new biogas facility, and net hiring (2,700 employees YTD with 34% of hires female). Financial position remains solid (net debt/EBITDA ~0.1x, cash & liquid investments ~SEK 12.2bn, SEK 6bn undrawn RCF). Management flagged continued capacity expansion for Gripen (Linköping, Brazil and potential additional hubs) but prefers clearer financing before committing to very large upfront investments for potential Ukraine orders.